Power of attorney is a legal designation that allows one person to act as the representative of another person. In most cases, power of attorney is enacted when someone becomes incapacitated due to the loss of mental or physical capabilities.
This may be the case for someone who is unconscious in a hospital after an injury or illness, but power of attorney may also be invoked when someone becomes unable to make mentally-sound decisions.
Not All Privileges Are the Same
When you designate someone as your legal representative or agent, this does not automatically grant all legal powers equally. Below are several different types of power of attorney:
Limited Power
A limited power of attorney is a designation that only allows an assigned agent the ability to act in specific legal matters. For example, someone could be assigned limited power of attorney in healthcare or financial matters only. This means that the agent is not able to handle additional matters or act in a representative capacity outside of the powers assigned.
Durable
Durable power of attorney assigns an agent the ability to sign documents and act as a representative in the case of incapacitation; however, this does not automatically grant the power to make medical decisions. To do this, a specific healthcare designation must be made.
When and Where is Power of Attorney Valid?
Setting up a power of attorney is something that usually has to be taken care of prior to an incapacitating event. If someone is deemed mentally unsound to make their own medical decisions, that person can not then assign power of attorney.
Different states also work with the concept of legal representation differently. Power of attorney in New York may look different than power of attorney in South Dakota or other states.
With this stated, power of attorney in New York or some other state should be recognized nationwide as it is a legal designation you are making, not a legal act in and of itself. The process for assigning power of attorney, however, may differ from state to state.
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Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at estate planning solutions blog.
